Market Comment from Lee Fenn-Tripp Director of Downer & Co
“What’s happening to the Newbury Property Market” is a question Downer & Co get asked repeatedly. Well, would it be a surprise to hear that our own research suggests that there isn’t just one big Newbury property market – but many small micro-property markets?
According to recent data released by the Office of National Statistics (ONS), I have discovered that at least three of these micro-property markets have emerged over the last 20+ years in the town.
For ease, I have named them the …
- ‘lower’ Newbury Property Market.
- ‘lower to middle’ Newbury Property Market.
- ‘middle’ Newbury Property Market.
The ‘lower’ and ‘lower to middle’ sectors of the Newbury property market have been fuelled over the last few years by two sets of buyers. The first set, making up the clear majority of those buyers are landlord investors who are throwing themselves into the Newbury property market to take advantage of alluringly low prices and even lower interest rates. The other set of buyers in the ‘lower’ and ‘lower to middle’ Newbury property market are the first-time buyers (FTB), although the FTB market has been affected by the new 2014 stricter mortgage affordability regulations and also fewer mortgages with low deposits.
Some of you may be interested to know how I have classified the three sectors.
- ‘lower’ Newbury housing market – the bottom 10% (in terms of value) of properties sold
- ‘lower to middle’ Newbury housing market – lower Quartile (or lowest 25% in terms of value) of properties sold
- ‘middle’ Newbury housing market – which is the median in terms of value
If one looks at the figures for West Berkshire Council area you can see the three different sectors (lower, lower/middle and middle) have performed quite differently.
|
West Berkshire Council Property Market – Sold Prices |
Price Paid in 1995 | Price Paid in 2017 | Percentage Uplift
1995 – 2017 |
| Lower (Bottom 10%) | £47,500 | £190,000 | 300.90% |
| Lower to Middle (Lower Quartile) | £59,000 | £258,250 | 337.71% |
| Middle (The Median) | £88,085 | £380,624 | 332.11% |
You can quite clearly see that it is the ‘lower to middle’ market that has performed the best.
You might ask, what do all these different figures mean to homeowners and landlords alike? Quite a lot – so let me explain. The worst performing sector (with the lowest Percentage uplift) was the ‘lower’ housing market. Therefore, interestingly, if we applied the best percentage uplift figure (i.e. from the ‘lower to middle’ market percentage uplift), to the ‘lower’ 1995 housing market figure, the 2017 figure of £190,000, would have been £207,912 instead – quite a difference you must agree?
Now, I have specifically not mentioned the upper reaches of the Newbury housing market for several reasons. Firstly, the lower or middle market is where most of the buy to let investment landlords buy their property and where the majority of property transactions take place. Secondly, due to the unique and distinctive nature of Newbury’s Higher-End property scene (because every property is different and they don’t tend to sell as often as the lower to middle market), it is much more difficult to calculate what changes have occurred to property prices in that part of the market – looking at the stats for the up-market Newbury Houses from Land Registry, only 20 properties in Newbury (and a 5 mile radius around it) have sold for £2,500,000 or more since 1997.
So, what should every homeowner and buy to let landlord take from the information that there are many micro-property markets? Well, when you realise there isn’t just one Newbury Property Market, but many Newbury “micro-property markets”, you can spot trends and bag yourself some potential bargains. Even in this market, I have spotted a number of bargains over the last few months that I have shared to my landlord database, especially in the ‘lower’ and ‘lower/middle’ market. If you want to be kept informed of those buy to let bargains, give me a call… It’s free to do so and I’m sure you wouldn’t want to miss out – would you?
I would love to know if you have spotted any micro-property markets in Newbury???
If you want to know more about property in West Berkshire, then one place for such information would be the Newbury Property Blog. Please visit www.newburypropertynews.co.uk view our pages on Facebook or pop into our office in Cheap Street in Newbury.
Connect with me on Linked In. Click Here
Like us on Facebook Click Here
or follow us on Twitter.Click Here
